L&T Midcap Fund

 

To generate capital appreciation by investing primarily in midcap stocks. L&T Midcap Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.

L&T Midcap Fund features in the small-cap category due to its preference for smaller mid caps. The fund's asset allocation reveals a 25-30 per cent allocation to small-cap stocks, about 10-11 percentage points lower than the small-cap category, while mid-cap allocation is about 55 per cent, with the rest parked in large caps. This may result in a lower risk profile, while also moderating the returns from this fund. The fund has been a moderate but very consistent performer, which has earned it a three-star rating almost without break for the last four years. Like other L&T funds, this fund's strategy is a blend of growth and value styles of investing. The focus is on owning fundamentally strong and scalable businesses with good management track record, at reasonable valuations.

After a very nondescript debut, with the fund trailing its benchmark from 2006 to 2008, it managed to outpace its benchmark in seven of the eight years from 2009 to 2016, quite a challenging period for the stock market. While it has been a consistent beater of its benchmark, it has had greater trouble outpacing the category, probably due to its conservative bias. Trailing one-and three-year returns, however, show it to be improving its relative performance, with a 9-10 percentage-point outperformance of its benchmark and 3 percentage-point outperformance of the category in 2016.

Overall, a conservative choice in the volatile small-cap category.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300